Global liquidity hit an all-time high this week, as the M2 money supplies of the U.S, Europe and China all climbed to new heights.

The global M2 money supply refers to the total amount of money in circulation that includes physical cash, checking accounts and savings accounts, representing the amount of cash that can be accessed quickly.

The impact of the M2’s new all-time high was felt on financial markets this week, as the S&P 500 index rose 1.2%, while a number of small-cap cryptocurrencies – dubbed ‘alts’ – experienced significant growth.

Football Fan Tokens Benefit from Global Liquidity ATH

One particular area of the cryptocurrency sphere that appeared to benefit greatly from increased global liquidity was the football Fan Token segment.

Numerous Fan Tokens related to clubs in the European elite experienced double-digit gains in the past few days, building on growth that had been simmering all month.

The Manchester City Fan Token ($CITY) experienced 27% growth over the course of the weekend, while a $30 million influx to the token’s trade volume marked a 2,900% increase to daily trades. $CITY’s value had been climbing slowly during the month, and total monthly growth now stands at 35%.

Other English Fan Tokens benefited too – the Arsenal Fan Token ($AFC) experienced 31% growth in a matter of hours leading up to July 28. Trade volume for ($AFC) increased more than twenty-fold, climbing from around $500,000 to more than $13.7 million.

Elsewhere in Europe, the Juventus Fan Token ($JUV) gained 28% during the weekend surge. Prior to the pump, the token’s average daily trade volume stood at $7 million. At the peak of the surge, daily trade volume had increased to over $70 million.

Fellow Italian giants Inter Milan ($INTER) saw the value of its Fan Token climb 13.7% during the same time period, while the daily trading average jumped from $500,000 to over $7 million.

The Fan Token of current Italian giants Napoli ($NAP) saw its value increase by 25% during the weekend surge. $NAP’s daily trade volume increased from $600,000 to over $6.5 million.

Historic Effects of Excess Liquidity

While the M2 supply is just one marker for conveying the amount of excess liquidity around the globe, it does have history when it comes to catalyzing booming cryptocurrency markets.

In 2020-21 when global M2 surged due to COVID-related stimulus, the value of Bitcoin rose from $7,000 to $69,000, accompanied by massive altcoin rallies, and the emergence of De-Fi, NFTs, and memecoins which were all bolstered by excess liquidity.